I live in Illinois but work in Wisconsin, where do I pay state income tax?

Question

I live in Illinois but work in Wisconsin, where do I pay state income tax?

Answer 1

You have to pay taxes on the state you work at.

Your employer in Wisconsin should issue you the W-2, so you can fill your income tax.

Answer 2

If there is a reciprocal agreement between Wisconsin and Illinois, you would pay only to Illinois.

If there isn't (and most states do not) then you would file a non-resident return form Wisconsin and a resident return for Illinois. Illinois would give you a credit for taxes paid to Wisconsin. The credit would be the lower of the taxes paid to Wisconsin or the tax assessed on the Wisconsin income in Illinois

If you had other income earned in Illinois, then you would not include that income on the Wisconsin return.

Answer 3

Illinois.  According to the reference below, Iowa, Kentucky, Michigan and Wisconsin have reciprocal agreements with Illinois.  You need to inform your Wisconsin employer that you live in Illinois, and want Illinois tax withheld.

"If your employer withheld taxes or you paid tax to these states on your compensation, you must claim a refund from that state. You may not claim a credit on Schedule CR for that tax. You must file the appropriate forms with that state to receive a refund of taxes withheld in error."

Answer 4

Maybe Wisconsin, maybe both, depends on many things.